Jan 21 Target Corp said it will stop
offering health coverage to part-time workers, citing new public
insurance exchanges floated by the U.S. government.
Less than 10 percent of the company's 361,000 employees
currently participate in the insurance plan that is being
discontinued, Target said in a company blog post on Tuesday.
"By offering them insurance, we could actually disqualify
many of them from being eligible for newly available subsidies
that could reduce their overall health insurance expense,"
The public exchanges set up under the health care law, also
known as Obamacare, allow individuals to buy
government-subsidized healthcare based on their income.
The health insurance coverage will be discontinued from
"Target will provide U.S. stores' part-time team members who
are currently enrolled in Target's health coverage and who are
losing access to that coverage a $500 cash payment," Jodee
Kozlak, executive vice president of Human Resources at Target
said in a company blog post. ()
The retailer joins a list of companies looking for ways to
tackle rising healthcare costs. In September, Home Depot
said it was shifting medical coverage for part-time workers to
new public marketplace exchanges.
Walgreen Co, the largest U.S. drugstore, and more
than a dozen other large employers have said they would offer
their employee insurance for 2014 through the Aon Hewitt
Corporate Health Exchange.
More than 2.1 million people have enrolled in private health
insurance plans through new federal and state websites since
they were launched in October as part of President Barack
Obama's healthcare overhaul, U.S. officials earlier said.